Aid group warns of 'humanitarian catastrophe' as separatists seize east Ukraine factories

The largest provider of humanitarian aid in separatist held areas of east Ukraine has suspended its operations there and warned of an "unprecedented humanitarian catastrophe" after gunmen seized its facilities.

The charitable foundation run by the billionaire Rinat Akhmetov, which operates a large aid operation in areas where most international aid groups have no access, said on Wednesday that separatist authorities had closed its entire network of distribution points.

The announcement came as separatist leaders said they had begun "nationalizing" businesses belonging to Mr Akhmetov, including the football stadium the foundation uses as a distribution depot, in response to a trade blockade imposed by Ukrainian activists.

Alexander Zakharchenko, the leader of the self proclaimed Donetsk People’s Republic, said on Wednesday that separatists had taken over 40 factories and coal mines, including Mr Akhmetov's, which have been paying Ukrainian taxes and traded with Kiev.

"Obstruction of the Humanitarian Center's operation is a threat to lives of Donbas civilians, who became hostages of the armed conflict and found themselves on the verge of survival in the heart of Europe in the 21st century. For many of them the Humanitarian Center's food packages is the main, and often the only source of subsistence," the groups said in a statement.

"Blocking of humanitarian aid is contrary to international law and can lead to humanitarian disaster, the scale of which will be unprecedented," the group added.

Ukrainian military veteran walks along rails as he takes part in a blockade against ongoing trade with Russian-backed insurgentsCredit:
ALEKSEY FILIPPOV/AFP

The Kremlin on Wednesday backed the separatist move, but did not comment on Mr Zakharchenko’s claim that Russia would supply materials for and buy the output of the occupied businesses.

“We are witnesses to a situation where regions rejected by their own state have found themselves in a still worse position amid tight blockade by the extremists,” said Dmitry Peskov, Vladimir Putin’s spokesman.

“There are the lives of several million people at stake. These people will have to survive somehow," he added.

Groups of activists including ex-servicemen began blocking railway lines linking separatist and government held territory last month in a bid to stop the trade in coal mined in separatist held territory.

About 10,000 people have been killed since war between Russian-backed separatists and Ukrainian government forces began in 2014.

Ukrainian nationalist protesters and war veterans have set up camp near railway lines to halt trade with separatist areasCredit:
AFP

Many factories in the heavily industrialised region have continued operating despite the war, with coal mines in separatist territory supplying factories in government-held areas.

The activists say such business amounts to trading with the enemy, but the government in Kiev has opposed the blockade, warning the suspension of coal shipments could lead to power cuts across the country.

Metinvest, a steel producer controlled by Mr Akhmetov, has said the blockade has already forced it to halt production temporarily at one of its mills and several coal mines.

The activists said on Monday that they would expand the blockade to cut off all remaining routes for what they called the “trade in blood.”

“We call on supporters to immediately expand the geography of the blockade, cutting off the last routes where the,” they wrote on the Facebook page of the “Blockade Headquarters."